On Friday, the stock prices of the oil shot up in the range of 44-46 dollars per barrel, after accidentally Energy Minister of Saudi Arabia, Khalid al-Falih, sent to printing a confidential statement, in which he explained to OPEC partners of its intention to work with them to support oil prices. Brent touched $ 46.55 and US WTI reached $ 44.09.
The unofficial statements of Riad have invigorated the market’s hopes of an agreed production cut at the next summit of ‘OPEC, which should be held in September and October at the request of Venezuela and Kuwait. This time, it would appear that the Saudi Kingdom is willing to lend a hand. Yet, after a few hours of the gains is gone, because among traders and analysts the discussion was cold on the current state of the numbers, and it was noticed that things are different from what you would like to believe.
weak oil demand, high bid
First, the expected lower global growth is expected to increase the demand for crude oil in 2017 by 1.2 million barrels, less than the 1.4 million previously expected. This, according to International Energy Agency estimates. And if the supply of non-OPEC countries is expected to decrease this year by 900,000 barrels a day next year would rebound to 300,000 barrels.
The stocks in the US have increased by one million barrels per period of two Fridays ago at an altitude of 522.5 million, well above the five-year average for the period and unusually going against the waning of these summer weeks, demonstrating that even in America there would still excess production.
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